entrepreneur Flashcards
break even point
the minimum sales revenue or total units sold needed for a business to be able to cover its own expenses and begin to make a profit.
cash flow forecast
process of estimating the cash that will be coming in to business.
debt financing
obtaining funds to start or operate a business by borrowing money that has to be paid back to a lender.
demand
the quantity amount of a good or service buyers are willing to purchase .
equity financing
obtaining funds to start or operate a business selling shares of ownership in the business.
expense
product costs plus operating expenses.
interest
price being paid to the lender for using his or her money.
loss
total expenses minus total revenue expended.
market price
that price at which the quantity that buyers are willing to buy.
operating expenses
costs that are required to cover the basic ongoing operation of the business such as rent.
opportunity cost
the next best alternative use given up when resources are used for an item or activity.
product costs
usually refers to the actual materials and labor to produce the good.
profit
total revenue minus total expenses over a period of time.
revenue
total dollar amount a business receives from the sale of its goods.
start up costs
total amount of money needed to get a business up and running.
